Author Topic: ASFI - Asta Funding  (Read 10164 times)

writser

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Re: ASFI - Asta Funding
« Reply #10 on: February 06, 2018, 07:00:59 AM »
Smart management. First they smoke out all minority shareholders. Finally it's time to distribute money to themselves.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.


Gamecock-YT

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Re: ASFI - Asta Funding
« Reply #11 on: February 06, 2018, 09:15:35 AM »
I happily sold out today. Don't trust these guys.

sbalsam

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Re: ASFI - Asta Funding
« Reply #12 on: February 06, 2018, 09:24:25 AM »
The final line in the PR is:
Mr. Stern continued, "I would like to personally thank our stockholders for the unwavering support and loyalty they have shown to the Company over the last several years."

Picasso

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Re: ASFI - Asta Funding
« Reply #13 on: February 06, 2018, 09:48:50 AM »
If they wanted to screw with the minority shareholders some more they would have done another large tender.  I'm keeping an eye on the situation because it would stand to reason that the discount to BV will be even larger after the dividend is paid but the signaling here seems to indicate there will be more dividends like these in the future.

writser

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Re: ASFI - Asta Funding
« Reply #14 on: February 06, 2018, 10:27:13 AM »
Picasso - good to see you back. What signaling do you see (apart from the fact that they just announced a giant dividend .. )?
« Last Edit: February 06, 2018, 10:29:34 AM by writser »
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Picasso

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Re: ASFI - Asta Funding
« Reply #15 on: February 06, 2018, 11:16:56 AM »
Well there was this as part of the tender:

Quote
Additionally, the Ricky Stern Family 2012 Trust (as Gary Stern's permitted assignee), acquired 471,086 Shares under the Purchase Agreement on March 10, 2017 for $4.9 million.

They had to use personal cash to purchase more shares (in addition to owning 50% more from the tender). Always seemed like they would do something spiteful after having to use their own cash to fend off Mangrove and would be more motivated to see the shares have better returns for shareholders since their incentives kind of shifted in that direction. There's really no reason for them to do a special dividend unless they are more interested in seeing the stock perform better over time.  They could have done another tender. So after the dividend is paid and it's trading at 30% of book, it seems kind of interesting. Also might be some selling once the dividend is paid. I think I've had a convo with someone about going long stocks with crooked management. If your incentives are aligned you can actually do pretty well.

writser

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Re: ASFI - Asta Funding
« Reply #16 on: February 16, 2018, 02:54:55 PM »
On vacation, wtf happened today?
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

writser

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Re: ASFI - Asta Funding
« Reply #17 on: September 06, 2018, 12:14:07 PM »
I picked up a few shares the last few weeks. This is still a horrible company but just too cheap. Pro forma tangible book value should be around $15 - $18 with hardly any liabilities. Net cash per share after deducting all liabilities should be $5 or higher. Current price: $4.20.

I got lucky with my timing: stock is up significantly the past few days, presumably due to the company giving an update regarding their financial restatements (which, frankly, are maybe interesting from an accounting perspective but mostly irrelevant in terms of valuation) and the fact that the Nasdaq accepted their plan for continued listing. So basically some non-events yet the stock is up ~40%. I'm tempted to sell a bit but it's still way too cheap. Possible catalysts: company gets filings up-to-date before year-end to comply with their Nasdaq plan, company reinstates dividend or the Stern family tries to take this vehicle private.

Also, due to the low float and volume this is a potential target for pump & dumps, as happened in August when the stock spiked from a $3.40 close to an intraday high of $4.75 (and back to $3.25 the next day). A small chance you can flip your shares to a hyped daytrader the next few months - I'll take it.

Not the worst place to park some cash I think.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

Foreign Tuffett

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Re: ASFI - Asta Funding
« Reply #18 on: October 02, 2018, 12:22:13 PM »
Just wanted to bump this as I think it's a good idea.....rare to find a US company listed on a major exchange trading at significantly under net cash.

Hat tip to writser for pointing me in the direction of the below press release, which gives the outline of their financial position.

https://www.sec.gov/Archives/edgar/data/1001258/000143774918016185/asta20180827_8k.htm

aceskc

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Re: ASFI - Asta Funding
« Reply #19 on: October 02, 2018, 04:12:04 PM »
Having a hard time reconciling the two statements "As of June 30, 2018, the Company had approximately $32.1 million in cash and cash equivalents, and approximately $6.6 million in available for sale investments, which is after the Company declared and paid a $35 million special dividend to its shareholders on February 28, 2018. Additionally, at June 30, 2018, the Company had no outstanding debt, and under $5 million in liabilities."

Additionally, the cumulative restatement change through June 30, 2017 to the Company's consolidated balance sheet for the Non-Reliance Periods was a decrease in total assets of $3.5 million; a decrease in total liabilities of $0.8 million; and a decrease to stockholders' equity of $2.7 million. At June 30, 2017, after the restatement of the financial statements for the Non-Reliance Periods, the Company had approximately $212.7 million in total assets; $93.5 million in total liabilities; and $119.2 million in stockholders' equity. The cumulative restatement change for the Non-Reliance Periods had no effect on cash and cash equivalents


Where did the $93.5M of liabilities go b/w Jun'17 and Jun'18. ? I see the special dividend and all their tender offers, but saw nothing in their press releases about any asset dispositions. Apologies, if I am missing something that should be obvious-but not very familiar with the story here.